Understanding Business Organisation: Premier Inn Hotel Analysis

This report analyses the organisational structure of Premier Inn Hotel and conducts PESTLE and SWOT analysis to understand external and internal factors affecting the hotel industry. It also discusses the impact of COVID-19 on the business. Subject: Business Organisation, Course Code: MGBBT0UBN

Understanding
Business Organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Organisational structure of Premier Inn hotel.............................................................................3
PESTLE Analysis............................................................................................................................4
SWOT Analysis ..............................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In today's competitive world, it is necessary to understand business organisation in a
strategic manner. Business organisation is an entity which is formed for purpose of selling their
products and service to customers in exchange of money and to satisfy demand of customers.
This report contain analysation of Premier Inn Hotel which is an international hotel chain of
United Kingdom (Akhtar and Sushil., 2018). Premier Inn Hotel was founded in year of 1987
which has around 72000 rooms. It is one of largest organisation as it has over eight hundred
branches in all over the world. This organisation is providing world class services to different
customers which enhance their experience. This report covers analysis about organisational
structure of Premier Inn Hotel which includes detail of ways in which activities are directed
towards attainment of goals of company. It consist description of external and internal factors
which create its impact on business due to COVID-19 situation.
TASK
Organisational structure of Premier Inn hotel
An organisational structure is that type of structure which outlines certain activities are
directed in order to achieve the goals of an organisation. These activities can be rules,
responsibilities and roles. Organisational structure also determines how information needs to
flow between different levels within the company.
Types of organisational structure
There are two types of organisational structure including tall structure and flat structure.
This has been described into following manner:
Tall structure: Tall organisation structure is divided into small parts or groups as it
contains many managers which controls small group of employees. Under this head, manager is
responsible for their group task and needs to reports to their senior level management and CEO
of company.
Flat structure: Flat structure is one where there are few level of management in
organisation. This structure empower employees and also provide them sense of responsibility
and autonomy(Bag., 2018).This type of organisational structure is not suitable for large
organisaiton and is only works in small organisation which has small work force.

In order to attract large number of customers, the Premier Inn hotel follows tall structure for
fulfilling best business practices.(Premier Inn organisation structure).This organisation has
nearly 700 hotel and it is not possible for CEO of company to conduct all operations of hotel .
For this, there are several managers who manage their business functions. This structure provide
benefits for business of Premier inn as it ensures that there is no misunderstanding in their
organisation between different managerial level. To accomplish various goals hotel has to
follow a precise business strategy with support of professional management (Brenkert., 2019).
For making mutual business decisions, it is important that management of hotel follows
democratic leadership style. In order to develop different dimensions into the market place,
Premier Inn hotel has followed the tall business structure. Premier Inn hotel top level
management divide different tasks and responsibilities to the department on the basis of different
functions.
Illustration : Tall Hierarchical Structure
Source : Hierarchical Structure

It is the major responsibility of the management which is working for Premier Inn hotel
to choose best structure for the organisation. (Brondoni., 2018).For analysing external
environment, it is necessary to do PESTLE analysis and this has been explained into following
manner:
PESTLE Analysis
 Political factors- The political factors are related to rules and regulations which are
formulated by government. Premier Inn chain of hotels follow all the policies and
regulations related to business in order to conduct safe and ethical business. (Eniola and
Entebang., 2017). Political factors can be BREXIT which create threat for business
organisation like Premier Inn hotel. When UK has taken exit from European Union then
it affects various kinds of business deals due to which negative fall has been observed.
Due to Brexit condition, government of UK has to made changes in their rules and
regulations with respect to different kinds of trading rates which create problems for
business. Pandemic situation also creates problems for hospitality sector which create
restrictions over travelling.
 Economic factors- Economic factors considers various aspects of the economy and how
the outlook on each area could impact the business. There are some economic indicators
which are usually measured and reported by government agencies. It includes economic
growth rates, interest rates, exchange rates, inflation and unemployment rates(Hakanen
and et.al., 2017). UK country is famous for it's education level due to which it can
provide highly skilled employees to an organisation which act as strong point for hotel as
well. Due to pandemic situation there are various kinds of business deals that have been
cancelled and it impacted the foreign currency level within nation.
 Social factors- Social factors are those factors which is related to belief, values which
create impact on business in terms of larger scale. For making a precise culture for an
organisation it is important for a company to consider all major factors. The management
of Premier Inn hotel mainly focuses on development of various individuals on the basis
of culture and also resolves conflicts. Purchasing power of people of UK has increased
which provide opportunity for business of Premier Inn as they can spend money on
service of company.

 Technological factors-Technological factors act as competitive advantage for Premier
Inn hotel as it adopts latest technology in their organisation which helps them to enhance
experience of their customers. This hotel uses advance software and computer systems
for purpose of gaining competitive edge in the market. The hotel also offers various
kinds of payment options like debit card, credit card and also other options like Paytm,
Google pay etc(Hill and et.al., 2017).Due to advancement of technology, business of
Premier Inn is facing issues in market. For overcoming this issues, business needs to
develop strong security system in their organisation which helps them to protect
important information of business.
 Legal factors: Legal factors are those factors which are related to rules and regulations.
For creating positive image in minds of customers, it is necessary that organisation has to
follow rules and regulations in a proper manner.Premier Inn is following all rules related
to health and safety, minimum wages, equality act and many more which provide
opportunity for business.
 Environmental factors: Environmental factors are those factors which are related
weather and climate changes. Business of Premier Inn hotel also depends on weather
conditions because good weather attracts large number of customers to visit different
kinds of tourist places and also gives opportunity to stay in such type of hotel.
(Kasemsap., 2018).The Premier Inn Hotel also follows certain kinds of rules and
regulations with respect to environment and also fulfils corporate social responsibility
which create favourable conditions for their business. Company is maintaining
cleanlinesses in area nearby their hotel which helps them to protect environment.
Premier Inn is not including any activity which create negative impact on environment.
SWOT Analysis
SWOT analysis is that type of analysis which is used for purpose of evaluating
competitive position of company and for developing strategic planning. This type of analysis
helps company to assess external as well as internal factors which can create larger impact on
business. SWOT analysis of Premier Inn hotel helps managers to identify weaknesses and threats
of hotel in order to gain advantages of opportunities and strengths.

STRENGTHS
 Premier Inn Hotel is that hotel which
has occupancy rate more than eighty
percent.
 Operating profit is also increased by
seventy percent in the year of 2017
 It is one of the profitable hotel in UK
who invests in refurbishments, décor
and real estate sector. Premier Inn hotel
has strong stand in the UK market with
78500 rooms in great locations and also
one of the largest hotel group in UK. (A
focused hotel group).
 Premier Inn hotel has low customer
acquisition cost and also have high
focus on stakeholder engagement
WEAKNESSES
 Premier Inn hotel has to face issues
with respect to hygiene conditions as
hotel has its history in which
housekeeping staff are using same
guest towels for cleaning their wash
rooms.(Premier Inn contract
housekeepers 'use same towel to clean
whole bathroom including TOILET and
work unpaid extra hours)
 Premier Inn hotel has limited global
presence as compared to their market
players as this is an organisation which
is operating in limited countries.(SWOT
analysis of Premier Inn (Premier Inn
SWOT)).
OPPORTUNITIES
 Premier Inn hotel has the opportunity
for more strategic tie-ups(Hill and
et.al., 2017).
 For making it's services more attractive
and innovative hotel can invest into
digital marketing
 Premier Inn hotel has opportunity to
build brand image through customer
experience.
THREATS
 Lockdowns has made the situation very
bad because service industry can't run
themselves into faster manner in this
pandemic situation.
 In this pandemic situation, Premier Inn
hotel earnings comes into negative
phase and it's become difficult to run
business into smoother manner.

CONCLUSION
It has been concluded from above report that for development of an economy, business
organisations play a very important role. There are many business organisations in hospitality
sector which provides various services to customers and generates employment. There are
different kinds of functions and operations which needs to be performed into appropriate manner.
So hotel has to follow a particular kind of organisational structure so that daily tasks can be
achieved into positive manner. For analysing internal environment of an organisation, it is
important to conduct SWOT analysis. This type of analysis supports in terms of creating
effective framework which is used in corporate strategy planning of a company. These analysis
help hotel or organisation to understand the impact of external and internal factors which create
opportunity for them to expand their business or identifying new ideas.

REFERENCES
Books and Journals
Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain business
environment: An empirical study of the Indian oil industry. Business Process
Management Journal.
Bag, S., 2018. Supplier management and sustainable innovation in supply networks: An
empirical study. Global Business Review, 19(3_suppl), pp.S176-S195.
Brenkert, G. G., 2019. Mind the gap! The challenges and limits of (Global) business
ethics. Journal of Business Ethics, 155(4), pp.917-930.
Brondoni, S. M., 2018. Competitive Business Management and Global Competition. An
Introduction. In Competitive Business Management (pp. 21-42). Routledge.
Eniola, A. A. and Entebang, H., 2017. SME managers and financial literacy. Global Business
Review, 18(3), pp.559-576.
Hakanen and et.al., 2017. Servitization in global business-to-business distribution: The central
activities of manufacturers. Industrial Marketing Management, 63, pp.167-178.
Hill and et.al., 2017. Global business today: Asia-Pacific perspective. McGraw-Hill Education.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Online Source
A focused hotel group,2021[Online]Available through:<https://www.whitbread.co.uk/about-us/>
Premier Inn contract housekeepers 'use same towel to clean whole bathroom including TOILET
and work unpaid extra hours,2018[Online]Available
through:<https://www.mirror.co.uk/news/uk-news/premier-inn-housekeepers-use-same-
12013548/>
(SWOT analysis of Premier Inn (Premier Inn SWOT)),2017[Online]Available
through:<https://howandwhat.net/swot-analysis-premier-inn-premier-inn-swot-analysis/>
(Premier Inn organisation structure).,2021[Online]Available
through:<https://www.studymode.com/subjects/premier-inn-organisation-structure-page1.html/>